KUWAIT CITY, May 14: Sources from oil sector are surprised with the cancellation of diesel subsidy under the current circumstance in which a huge shortage is seen in the production of gas needed for fueling the factories, reports Al-Watan Arabic daily.

Sources affirmed that the issue will negatively affect the price of oil but government keeps contradicting itself, with some of its officials confirming the cancellation of subsidy on diesel while others maintain that no taxes will be imposed on the people — although the cancellation of subsidy implies that taxes will be imposed anyway.

Meanwhile, sources said the decision has been made in an attempt to continue affording the preferential prices of Dow Chemical. They wondered if the proposal entails improving the living conditions of citizens by the authorities easing heavy burdens on state budget to satisfy the citizens.